Purpose – This paper aims to investigate the barriers for adopting mobile banking services. From a
methodological perspective, this paper seeks to build on two widely used models for technology
adoption, the Technology Acceptance Model (TAM) and Innovation Diffusion Theory and to test a
model that is better able to predict consumers’ intention to use mobile banking.
Design/methodology/approach – A research model extends the TAM model by additionally
examining the effects of compatibility, trust, credibility, perceived risk and cost on behavioural
intention. The empirical approach was based on an online survey of 263 young people in Germany,
undertaken during August/September 2009. The data were analysed using structural equation
modelling.
Findings – The results of the study indicated that compatibility, perceived usefulness, and risk are
significant indicators for the adoption of m-banking services. Compatibility not only had a strong
direct effect but was also identified as an important antecedent for perceived ease of use, perceived
usefulness and credibility. Trust and credibility are crucial in reducing the overall perceived risk of
m-banking.
Originality/value – The results of this study have implications for researchers and practitioners.
The proposed model explains 65 per cent of the variance in intention to adopt mobile phone banking,
which is more than the 40 per cent of variance typically found in other studies using the TAM. This
study provides a basis for further refinement of models to predict technology adoption, in particular
the inclusion of compatibility as a predictor of behavioural intention. In terms of behavioural and
demographic data, the study focuses on segments of individuals who are most likely to adopt
m-banking.
Keywords Mobile communication systems, Banking, Trust, Risk assessment, Youth
Paper type Research paper